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Applying Managerial Accounting Concepts to the Service Industry:

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements. (All amounts in SAR except units.)

Given the following information for Riyadh Corporation:
Advertising costs 18,000
Administrative salaries 39,000
Delivery vehicle depreciation 12,000
Factory repair and maintenance 55,000
Indirect labor 48,000
Indirect materials 23,000
Manufacturing equipment depreciation 18,000
Office rent 24,000
President’s salary 150,000
Sales revenue 1,000,000
Sales salary 120,000
Direct materials 140,000
Direct labor (10,000 hours) 250,000
Machine hours 1,600
Machine hours per unit 4
Direct labor hours per unit 4
Direct materials per unit ?
Units manufactured 400
Units sold 375

Direction 1. Identify (list) and total period costs

  1. Calculate overhead per unit based on machine hours
  2. Calculate total product costs for units manufactured
  3. Calculate total cost of goods sold
  4. Prepare income statement in good form assuming no beginning inventory
  5. You must show all your work

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